Question 1

Which of the following is correct?

Accepted Answer

A)  Over the last 100 years Japan had a higher average growth rate than the United States.It follows that the standard of living in Japan is greater than in the United States.
B)  The typical person in Bangladesh today has about the same real income as a typical American 100 years ago.
C)  The typical citizen of China today has about half as much real income as the typical American today.
D)  None of the above is correct.E) B) and C)
F) A) and D)

Question 2

If an American-based firm opens and operates a new watch factory in Panama,then it is engaging in

Accepted Answer

A)  foreign portfolio investment.
B)  foreign financial investment.
C)  foreign direct investment.
D)  indirect foreign investment.E) None of the above
F) All of the above

Question 3

Which of the following is correct?

Accepted Answer

A)  If developing countries limit career and educational opportunities for women, birth rates are likely to be lower.
B)  Growth rates in developed and developing countries are nearly the same.
C)  Historically, in periods where the rate of population growth was high, so was the rate of growth in world real GDP per person.
D)  None of the above is correct.E) A) and D)
F) A) and B)

Question 4

If a country's saving rate declined,then other things the same,in the long run it would have

Accepted Answer

A)  lower productivity, but not lower real GDP per person.
B)  lower productivity and lower real GDP per person.
C)  lower real GDP per person, but not lower productivity
D)  neither lower productivity nor lower real GDP per person.E) A) and B)
F) None of the above

Question 5

Productivity

Accepted Answer

A)  is nearly the same across countries, and so provides no help explaining differences in the standard of living across countries.
B)  explains very little of the differences in the standard of living across countries.
C)  explains some, but not most of the differences in the standard of living across countries.
D)  explains most of the differences in the standard of living across countries.E) None of the above
F) All of the above

Question 6

Last year real GDP in Oceania was 561.0 billion and the population was 2.2 million.The year before real GDP was 500.0 billion and the population was 2.0 million.What was the approximate growth rate of real GDP per person?

Accepted Answer

A)  12 percent
B)  10 percent
C)  4 percent
D)  2 percentE) A) and B)
F) A) and C)

Question 7

In 2003 The Presidents of the African countries of Mali and Burkina Faso

Accepted Answer

A)  requested that rich countries apply free trade rules to those products where poor countries have a proven competitive advantage.
B)  argued that free trade was not a policy that developing nations would find it wise to follow.
C)  said that at their current stage of development that most of the principles of market economies were not practical.
D)  None of the above is correct.E) All of the above
F) A) and B)

Question 8

The population growth rate tends to be higher in developed countries than in developing countries.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following is considered human capital?

Accepted Answer

A)  the comfortable chair in your dorm room where you read economics texts
B)  the amount you get paid each week to work at the library
C)  the things you have learned this semester
D)  any capital goods that require a human to be present to operateE) A) and D)
F) None of the above

Question 10

Dilbert's Incorporated produced 5,000,000 units of accounting software in 2004.At the start of 2005 the pointy-haired boss reduced total annual hours of employment from 10,000 to 8,000 and production was 4,800,000.These numbers indicate that productivity

Accepted Answer

A)  fell by 4%.
B)  fell by 20%.
C)  rose by 12%.
D)  rose by 20%.E) B) and C)
F) A) and B)

Question 11

Which of the following is an example of a nonrenewable resource?

Accepted Answer

A)  coal
B)  honey
C)  livestock
D)  All of the above are correct.E) C) and D)
F) None of the above

Question 12

An increase in the saving rate would,other things the same,

Accepted Answer

A)  increase growth more for a poor country than a rich country, and raise growth permanently.
B)  increase growth more for a poor country than a rich country, but raise growth temporarily.
C)  increase growth more for a rich country than a poor country, and raise growth permanently.
D)  increase growth more for a rich country than a poor country, but raise growth temporarily.E) A) and B)
F) A) and C)

Question 13

Your company discovers a better way to produce mousetraps,but your better methods are not apparent from the mousetraps themselves.Your knowledge of how to more efficiently produce mousetraps is

Accepted Answer

A)  common technological knowledge.
B)  common, but not technological, knowledge.
C)  proprietary technological knowledge.
D)  proprietary, but not technological, knowledge.E) A) and B)
F) B) and D)

Question 14

In the 1800s,Europeans purchased stock in American companies that used the funds to build railroads and factories.The Europeans who did this made

Accepted Answer

A)  foreign portfolio investments.
B)  indirect domestic investments.
C)  foreign direct investments.
D)  foreign indirect investments.E) A) and C)
F) B) and D)

Question 15

Suppose that real GDP grew more in Country A than in Country B last year.

Accepted Answer

A)  Country A must have a higher standard of living than country B.
B)  Country A's productivity must have grown faster than country B's.
C)  Both of the above are correct.
D)  None of the above is correct.E) None of the above
F) C) and D)

Question 16

If a country were to increase its saving rate,then in the long run it would also increase its

Accepted Answer

A)  level of income.
B)  growth rate of income.
C)  growth rate of productivity.
D)  All of the above are correct.E) B) and D)
F) None of the above

Question 17

Which of the following is a part of your Economics professor's human capital?

Accepted Answer

A)  the things she learned at some prestigious university
B)  her copy of Mankiw's text
C)  her chalk holder
D)  All of the above are correct.E) A) and B)
F) None of the above

Question 18

Using the production function and notation in the text,K/L measures

Accepted Answer

A)  natural resources per worker.
B)  human capital per worker.
C)  output per worker.
D)  physical capital per worker.E) B) and C)
F) A) and D)

Question 19

Which of the following nations experienced average rates of economic growth of less than 2.0 percent over the last 100 years?

Accepted Answer

A)  Bangladesh
B)  Pakistan
C)  United Kingdom
D)  All of the above are correct.E) None of the above
F) B) and C)

Question 20

Other things the same,a country that increases its saving rate increases

Accepted Answer

A)  its future productivity and future real GDP.
B)  neither its future productivity nor future real GDP.
C)  its future productivity, but not its future real GDP.
D)  its future real GDP, but not its future productivity.E) A) and B)
F) A) and C)

Exam 25: Production and Growth

If a country were to increase its saving rate,then in the long run it would also increase its

Correct AnswerverifiedShow Answer

Suppose that real GDP grew more in Country A than in Country B last year.

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Using the production function and notation in the text,K/L measures

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Which of the following is a part of your Economics professor's human capital?

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Which of the following is considered human capital?

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In the 1800s,Europeans purchased stock in American companies that used the funds to build railroads and factories.The Europeans who did this made

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Which of the following is correct?

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Which of the following is an example of a nonrenewable resource?

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In 2003 The Presidents of the African countries of Mali and Burkina Faso

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An increase in the saving rate would,other things the same,

Correct AnswerverifiedShow Answer

Productivity

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Which of the following is correct?

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If an American-based firm opens and operates a new watch factory in Panama,then it is engaging in

Correct AnswerverifiedShow Answer

Dilbert's Incorporated produced 5,000,000 units of accounting software in 2004.At the start of 2005 the pointy-haired boss reduced total annual hours of employment from 10,000 to 8,000 and production was 4,800,000.These numbers indicate that productivity

Correct AnswerverifiedShow Answer

Your company discovers a better way to produce mousetraps,but your better methods are not apparent from the mousetraps themselves.Your knowledge of how to more efficiently produce mousetraps is

Correct AnswerverifiedShow Answer

If a country's saving rate declined,then other things the same,in the long run it would have

Correct AnswerverifiedShow Answer

Last year real GDP in Oceania was 561.0 billion and the population was 2.2 million.The year before real GDP was 500.0 billion and the population was 2.0 million.What was the approximate growth rate of real GDP per person?

Correct AnswerverifiedShow Answer

The population growth rate tends to be higher in developed countries than in developing countries.

Correct AnswerverifiedShow Answer

Other things the same,a country that increases its saving rate increases

Correct AnswerverifiedShow Answer

Which of the following nations experienced average rates of economic growth of less than 2.0 percent over the last 100 years?

Correct AnswerverifiedShow Answer

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